Economic indicators not so favorable for Sri Lanka

Economic indicators not so favorable for Sri Lanka

8 December 2019 10:46 pm

Sri Lanka’s major export crops tea, rubber and Coconuts continue to figure prominently in the country’s economy although its production and contribution to gross domestic product (GDP) declined during the past ten months. 

During the first ten months of 2019, domestic tea production broadly remained unchanged in comparison to the same period in the previous year despite the considerable decline during the month of October.

Production of rubber decreased in response to low market prices for rubber, while coconut production increased significantly continuing its growth momentum.

During the period, crude oil prices largely showed an increasing trend. Prices increased as investors continued to gear up for deeper production cuts as OPEC agreed to increase output curbs by nearly 50 per cent in early 2020.Overall, both Brent and WTI prices increased by US$ 2.1 per barrel and US$ 2.3 per barrel, respectively, within the period.

The reserve money increased compared to the previous week mainly due to the increase in currency in circulation and deposits held by the commercial banks with the Central Bank.

The total outstanding market liquidity was a surplus of Rs. 9.518 bn by end of the week, compared to a surplus of Rs. 11.724 bn by the end of last week.

During the year up to 06th December 2019 the Sri Lanka rupee appreciated against the US dollar (0.8 per cent).
The gross official reserves were estimated at US dollars 7,520.9 mn as at 29th November 2019. India, UK, China, Germany and France were the top five sources of tourist arrivals, accounting for 50.2 per cent of total tourist arrivals up to the month of November 2019.